The new 12-sided pound and what you need to know
- March 6, 2017
- Posted by: Digitalcruxconsult
- Category: Finance & accounting, Financial Service
New 12- sided £1 coin
The Royal Mint has announced 28 March 2017 as official date to launch the new 12 –sided coin. The new 12- sided £1 coins will replace the current “round pound”, introduced over 30 years ago.
Why the replacement?
According the Royal Mint, the current £1 coin is being replaced because of its vulnerability to sophisticated counterfeiters. It is estimated that one in thirty £1 coins in circulation is a counterfeit. The new 12 -sided £1 coin is said to be the most secure coin in the world and will be introduce on 28 March 2017 to reduce the costs of counterfeits to businesses and the taxpayer.
What will happen to the “ round £1 coin “ from 28th March 2017?
The new 12-sided 1coin will be in circulation from 28th March 2017. The general public including businesses across the UK have been informed about the proposed replacement. Businesses have been advised to prepare for the Introduction of the new £1 coin; Co-circulation period- when the new £1 coin and the old £ coin are in circulation at the same time; and Demonetisation, when the current £1 coin is no longer legal tender. Adequate measures have been put in place to support businesses in adapting to this change. Vending Machines Manufacturers and businesses are also advised to upgrades their machines to accept the new £1 coin..
According to the Royal Mint, legal tender status of the round £1 coin will be withdrawn on 15th October 2017. From this date shops will no longer accept these coins, but you will still be able to take them to your bank. It is advisable that you use your coins or return them to your bank before 15th October.
Where can I exchange my old coins before and after October?
According to the Royal Mint you can deposit your old coin at most high street banks including RBS, NatWest, Ulster, HSBC, Barclays, Lloyds, Santander, Nationwide, Clydesdale, Yorkshire Bank, Halifax, Bank of Scotland and The Post Office.
After 15 October, you’ll still be able to deposit old £1 coins into your bank account. Many high-street banks including building societies will continue to accept the old pound. However, Barclays, HSBC, Lloyds/Bank of Scotland, Nationwide, RBS and Santander have said they will only offer this service for their own customers. If you’re not their customers, you may be required to open an account before depositing your old £1coin. So don’t wait till the deadline.
Key Dates for Businesses :
28 March to 15 October 2017: Co-circulation period
- you can accept both coins from your customers.
- to enable banks to process your coins during the co-circulation period please ensure that old and new £1 coins are not mixed but returned in separate bags.
- your equipment may be able to accept or dispense both £1 coins or just one. Please check with your equipment suppliers.
- you will need to tell your customers which coins your equipment can accept.
16 October 2017 onwards: Demonetisation
- all your coin handling equipment should be able to accept the new £1 coin.
- you are under no obligation to accept the round £1 coin from your customers and you should not distribute the round £1 coin.
- the round £1 coin can continue to be deposited into a customer’s account at most high street banks and the Post Office. Note: check with your bank for more details, including deposit limits.